ITB vs. XHB

Last updated Aug 2, 2026

ITB (iShares U.S. Home Construction ETF) and XHB (SPDR S&P Homebuilders ETF) are both Building & Construction funds - ITB tracks the Dow Jones U.S. Select Home Construction Index while XHB tracks the S&P Homebuilders Select Industry Index. Both are passively managed. Over the past 10 years, ITB returned 13.43%/yr vs 12.21%/yr for XHB. Their correlation of 0.95 means they have usually moved in the same direction. ITB charges 0.38%/yr vs 0.35%/yr for XHB.

Performance

ITB vs. XHB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Home Construction ETF (ITB) and SPDR S&P Homebuilders ETF (XHB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ITB achieves a -1.69% return, which is significantly lower than XHB's 1.01% return. Over the past 10 years, ITB has outperformed XHB with an annualized return of 13.43%, while XHB has yielded a comparatively lower 12.21% annualized return.

ITB

• 1D: -1.18%
• 1M: -8.32%
• 6M: -7.21%
• YTD: -1.69%
• 1Y: -5.06%
• 3Y*: 2.79%
• 5Y*: 6.57%
• 10Y*: 13.43%
• ALL TIME*: 4.08%

XHB

• 1D: -0.79%
• 1M: -7.88%
• 6M: -4.06%
• YTD: 1.01%
• 1Y: 0.45%
• 3Y*: 7.59%
• 5Y*: 7.43%
• 10Y*: 12.21%
• ALL TIME*: 5.06%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
ITB iShares U.S. Home Construction ETF	$179.18M	$195.32M	$218.82M
XHB SPDR S&P Homebuilders ETF	$247.88M	$253.08M	$291.07M

ITB vs. XHB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ITB iShares U.S. Home Construction ETF	-1.69%	-5.26%	2.06%	68.91%	-26.26%	49.25%	26.42%	48.70%	-30.92%	59.65%
XHB SPDR S&P Homebuilders ETF	1.01%	-0.69%	9.87%	60.10%	-28.93%	49.70%	27.97%	41.30%	-25.73%	31.80%

Correlation

The correlation between ITB and XHB is 0.96 - they have historically moved very closely together. At this level, their price movements offset little of one another.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.96
Correlation (3Y) Balances recent behavior with more history.	0.97
Correlation (5Y) Shows whether the relationship held over a longer period.	0.96
Correlation (10Y) Provides a long-term view across more market conditions.	0.95
Correlation (All Time) Calculated using the full available price history since May 5, 2006	0.95

The correlation between ITB and XHB has been stable across timeframes, ranging from 0.95 to 0.97 - a consistent structural relationship.

ITB vs. XHB - Sectors Allocation Comparison

Sectors	ITB	XHB
Consumer Cyclical	74.6%	60.4%
Industrials	16.0%	38.2%
Basic Materials	8.7%	14.4%
Real Estate	0.7%	1.3%
Communication Services	-	-
Consumer Defensive	-	3.5%
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Technology	-	-
Utilities	-	-

Return for Risk

ITB vs. XHB — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

ITB

ITB Risk / Return Rank: 10
ITB Sharpe Ratio Rank: 10
ITB Sortino Ratio Rank: 10
ITB Omega Ratio Rank: 10
ITB Calmar Ratio Rank: 9
ITB Martin Ratio Rank: 9

XHB

XHB Risk / Return Rank: 13
XHB Sharpe Ratio Rank: 13
XHB Sortino Ratio Rank: 14
XHB Omega Ratio Rank: 13
XHB Calmar Ratio Rank: 13
XHB Martin Ratio Rank: 12

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

ITB vs. XHB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Home Construction ETF (ITB) and SPDR S&P Homebuilders ETF (XHB). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	ITB	XHB	Difference
Sharpe ratio: Return per unit of total volatility	-0.09	0.08	-0.17
Sortino ratio: Return per unit of downside risk	0.09	0.35	-0.26
Omega ratio: Gain probability vs. loss probability	1.01	1.04	-0.03
Calmar ratio: Return relative to maximum drawdown	-0.10	0.11	-0.21
Martin ratio: Return relative to average drawdown	-0.17	0.21	-0.39

ITB vs. XHB - Sharpe Ratio Comparison

The current ITB Sharpe Ratio is -0.09, which is lower than the XHB Sharpe Ratio of 0.08. The chart below compares the historical Sharpe Ratios of ITB and XHB, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

ITB vs. XHB - Drawdown Comparison

The maximum ITB drawdown since its inception was -86.53%, which is greater than XHB's maximum drawdown of -81.61%. Use the drawdown chart below to compare losses from any high point for ITB and XHB.

Drawdown Indicators

	ITB	XHB	Difference
Max Drawdown Largest peak-to-trough decline	-86.53%	-81.61%	-4.92%
Max Drawdown (1Y) Largest decline over 1 year	-26.04%	-21.71%	-4.33%
Max Drawdown (3Y) Largest decline over 3 years	-33.35%	-30.53%	-2.82%
Max Drawdown (5Y) Largest decline over 5 years	-40.55%	-39.46%	-1.09%
Max Drawdown (10Y) Largest decline over 10 years	-52.10%	-49.57%	-2.53%
Current Drawdown Current decline from peak	-25.47%	-16.36%	-9.11%
Average Drawdown Average peak-to-trough decline	-36.98%	-27.48%	-9.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	14.54%	11.08%	+3.46%

Volatility

ITB vs. XHB - Volatility Comparison

iShares U.S. Home Construction ETF (ITB) has a higher volatility of 8.79% compared to SPDR S&P Homebuilders ETF (XHB) at 7.68%. This indicates that ITB's price experiences larger fluctuations and is considered to be riskier than XHB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ITB	XHB	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.79%	7.68%	+1.11%
Volatility (6M) Calculated over the trailing 6-month period	22.03%	21.65%	+0.38%
Volatility (1Y) Calculated over the trailing 1-year period	29.51%	28.26%	+1.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.57%	28.00%	+1.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	30.20%	27.59%	+2.61%

ITB vs. XHB - Expense Ratio Comparison

ITB has a 0.38% expense ratio, which is higher than XHB's 0.35% expense ratio.

Dividends

ITB vs. XHB - Dividend Comparison

ITB's dividend yield for the trailing twelve months is around 0.68%, more than XHB's 0.63% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ITB iShares U.S. Home Construction ETF	0.68%	1.67%	0.46%	0.48%	0.86%	0.37%	0.46%	0.50%	0.63%	0.28%	0.43%	0.34%
XHB SPDR S&P Homebuilders ETF	0.63%	0.78%	0.59%	0.77%	1.06%	0.51%	0.73%	0.89%	1.25%	0.72%	0.67%	0.50%

Frequently Asked Questions

Can I hold both ITB and XHB in my portfolio?

With a correlation of 0.96, ITB and XHB move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, ITB or XHB?

ITB has higher volatility (8.79%) compared to XHB (7.68%). In terms of maximum drawdown, ITB dropped -86.53% vs XHB's -81.61%.

Which ETF is better, ITB or XHB?

On 10-year performance, ITB leads with 13.43% vs 12.21% for XHB. On fees, XHB is cheaper at 0.35% per year. On volatility, XHB has been the lower-risk option at 7.68%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ITB or XHB?

Over the 10-year period, ITB has performed better with a 13.43% return vs 12.21%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ITB or XHB?

XHB is cheaper with a 0.35% expense ratio, compared with 0.38% for ITB.

Which ETF pays a higher dividend yield, ITB or XHB?

ITB has the higher dividend yield at 0.68%, compared with 0.63% for XHB.

What is the main difference between ITB and XHB?

ITB tracks Dow Jones U.S. Select Home Construction Index, while XHB tracks S&P Homebuilders Select Industry Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.38% for ITB and 0.35% for XHB.

Which has better risk-adjusted returns?

XHB currently has the higher Sharpe Ratio (0.08 vs -0.09), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.